Why? Because while wages for most workers have stagnated or eroded, worker productivity has zoomed upward. Productivity is the output of goods and services per hour worked. Productivity growth, EPI explains, "provides the basis for the growth of living standards."

There was a time in our nation's history when the typical worker's wages rose in tandem with productivity as shown in this graph from the EPI report.

The decades following World War II saw the rise of a strong middle class. But starting in 1973, wages began to stagnate, even as productivity continued to climb.

While EPI's report is technical and provides a great deal of data to pore through, the main point to take away is this: the "divergence of pay and productivity has meant that many workers were not benefitting from productivity growth—the economy could afford higher pay but it was not providing it."

In 2001, a typical Oregon worker produced about $57,000 of goods and services in today's dollars. By 2010, productivity had increased to about $76,000. This translates to a growth in productivity of 32 percent — over three times the national increase of 9.8 percent over the same period.

No other state saw a greater increase in worker productivity.

The growth in worker productivity provides the basis for workers to enjoy better wages here in Oregon (and the nation). We have the resources to fix the pressing problem — stagnant median income — that Treasury Secretary Geithner cited.

How do we ensure that Oregonians' productivity gains benefit all workers? We need to lower the unemployment rate by creating private and public jobs. We need to invest in education and training of Oregonians so they can get those jobs. We need to improve investments in public structures — the kind of investments that promote the common good and that, as Secretary Geithner noted in an OPB interview following his speech (at 5:08 of .mp3), only governments can and will make. And we need a more robust unionized workforce, which raises wages and benefits for all workers.

The real challenge is, do we have the political will to do those things and get income and wages for the typical Oregonian back on track with Oregon's stellar gains in productivity?

This post was originally published on www.blueoregon.com on April 27, 2012. The original post can be found at http://www.blueoregon.com/2012/04/our-economy-can-afford-better-pay-all-workers/.

The Oregon Center for Public Policy researches and analyzes tax, budget, and economic issues. Our goal is to improve decision making and generate more opportunities for all Oregonians. Learn more about the Center.